Combined oil production (crude oil and lease condensate) from the top five U.S. oil-producing states increased during 2011 (see chart above). The biggest gains were in North Dakota and Texas, due in large part to increased horizontal drilling and hydraulic fracturing activity. Texas, Alaska, California, North Dakota, and Oklahoma accounted for about 56% of U.S. oil production last year, according to EIA's February Petroleum Supply Monthly report.

Highlights from the top oil-producing states in 2011 included:

Texas. The Eagle Ford shale formation in south Texas contributed to gains in the state's oil production, which averaged 1,425 thousand barrels per day (bbl/d), the highest level since 1997. [Update: for the Eagle Ford production, please my post/remarks here -- D.R.]

Alaska. Oil production fell for the ninth year in row, averaging 563 thousand bbl/d.

California. Oil production averaged 535 thousand bbl/d, the lowest level in at least three decades.

North Dakota. Preliminary data indicate increasing oil production from the Bakken formation pushed North Dakota ahead of California in December as the third biggest oil-producing state. North Dakota's oil production averaged 535 thousand bbl/d in December 2011 and 419 thousand bbl/d for the year.

Oklahoma. Oil production averaged 204 thousand bbl/d during 2011, topping 200 thousand bbl/d for the first time since 1998.

(Also, please see "United States: Top 8 Crude Oil Producing States, 2006-Feb.2011." North Dakota has overtaken California as the third-largest oil-producing state in the nation. Production totals released [...] by both states show North Dakota pumped 16.9 million barrels of oil in January [2012], compared with California's 15.8 million barrels. North Dakota had a daily average of 546,000 barrels, besting California by more than 36,000 barrels---please see newsok.com Mar 8, 2012. Update: Crude oil output in North Dakota reached a record high in February [2012] as a mild winter boosted activity in the Bakken shale prospect, bringing the state closer to overtaking Alaska as the second-largest oil producer in the country. North Dakota crude oil production rose by about 12,000 barrels per day (bpd), to more than 558,000 bpd, data from the state regulator showed [...], affirming the state's position as the third-largest producing state in the union after Texas and Alaska---please see Reuters, Apr 11, 2012Update 2: North Dakota passed Alaska in March 2012 to become the second-leading state in
crude oil production, trailing only Texas---please see my post "North
Dakota Tops Alaska in Oil Production, Trailing Only Texas."-- D.R.)

EIA estimates of annual dry natural gas production indicate that the United States surpassed Russia as the world's leading producer of dry natural gas beginning in 2009 when Russian production dropped in conjunction with the economic downturn and reduced demand (see chart above). Both countries produced more than 20 trillion cubic feet (Tcf) of dry natural gas in 2010. Definitive comparisons of natural gas production trends in the two countries are imprecise due to differences in terminology and reporting methodologies.

Dry natural gas production in the United States rose 18% between 2005 and 2010—mainly due to growth in shale gas production. Increased use of horizontal drilling in conjunction with hydraulic fracturing spurred natural gas supply gains. Other factors contributed to gains in natural gas production: improved site planning and field optimization, multi-well drilling from a single pad, rising associated natural gas production from oil plays, and improved drill-bit technology. According to Lippman Consulting, annual shale natural gas production in key shale plays grew from 1.6 Tcf to 7.2 Tcf between 2007 and 2011 (see chart below).

[Click on chart to enlarge]

Source: U.S. Energy Information Administration, based on Lippman Consulting, Inc. Note: Lippman Consulting, Inc. gross withdrawal estimates, as of December 2011, converted to dry production estimates with EIA-calculated average gross-to-dry shrinkage factors by state and/or shale play.

Since 1996, Russia's dry natural gas production record has been mixed. It was relatively unchanged between 1996 and 2001, grew to almost 22 Tcf in 2006, and then remained relatively stable before declining in 2009. Two factors leading to this decline were a slow-down in domestic natural gas consumption in Russia and Russian suppliers' cutbacks to match reduced gas needs in Europe. Russian dry natural gas production rebounded somewhat in 2010, although the best available data indicate it remained about 2% lower than U.S. production of natural gas that year. [Full story]

**OPECtotal includes also imports from the United Arab Emirates – 18,000 barrels per day.

***OPEC total includes also imports from Libya – 32,000 barrels per day.

Source: U.S. Energy Information Administration (EIA), Feb 28, 2012

(The top five exporting countries accounted for 69 percent of United States crude oil imports in December 2011 while the top ten sources accounted for approximately 89 percent of all U.S. crude oil imports. The top five sources of US crude oil imports for December 2011 were Canada (2,436 thousand barrels per day), Saudi Arabia (1,293 thousand barrels per day), Mexico (945 thousand barrels per day), Venezuela (810 thousand barrels per day) and Nigeria (498 thousand barrels per day)---please see EIA, December 2011 Import Highlights. Also, please see "U.S. Crude Oil Imports from Top 15 Countries, Dec 2010" and "U.S. Crude Oil Imports from Top 15 Countries, Jun 2012." – D.R.)

Thursday, March 8, 2012

Crude oil production in the United States is expected to surge to 5.83 million barrels per day in 2012, an increase from last year, the EIA declared.

The U.S. Energy Department's Energy Information Administration said in its March energy outlook that crude oil production should increase from 5.6 million barrels per day in 2011 [please see remarks below -- D.R.] to 5.83 million bpd in 2012 [please see remarks below -- D.R.].

Critics accuse U.S. President Barack Obama of blocking domestic energy production. The White House says oil production is the highest it's been in years, though Republican leaders say that's because of policies enacted by the previous administration. [Read more]

(U.S. crude oil production increased by an estimated 120 thousand bbl/d to 5.60 million bbl/d in 2011. A 390-thousand bbl/d increase in lower-48 onshore production in 2011 was partly offset by a 40-thousand bbl/d decline in Alaska and a 230-thousand bbl/d decline in output in the Federal Gulf of Mexico/GOM. Forecast U.S. total crude oil production increases by 230 thousand bbl/d in 2012 and by a further 90 thousand bbl/d in 2013. Continued increases in lower-48 onshore crude oil production of 340 thousand bbl/d in 2012 overshadow declines averaging about 20 thousand bbl/d in Alaskan output and a 90-thousand bbl/d decrease in GOM production. The rise in production is driven by increased oil-directed drilling activity, particularly in onshore shale formations (my emphasis -- D.R.). The number of onshore oil-directed drilling rigs reported by Baker Hughes increased from 777 at the beginning of 2011 to 1,293 on March 2, 2012---please see EIA's Short-Term Energy Outlook, March 6, 2012. Also, please see Aaron and David Rachovich, "U.S. Crude Oil Production, 1970-2010 -- EIA". -- D.R.)